A bit of risk-taking at the start of the week, Brexit talks, and anticipation of this week’s Eurozone inflation data may make or break EUR/USD’s short-term downtrend.
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Polish refiner PKN CEO Orlen shared on Saturday that Russia halted its oil supplies to Poland
New Zealand’s retail sales sank by 0.6% in Q4 after a surprise 0.6% increase in Q3 2022
PBOC slashed its daily midpoint fix from 6.8942 to 6.9572. It’s the biggest weakening of the onshore yuan and it dragged the currency to its lowest level against the dollar since December 30
Britain and the European Union leaders to hold talks in London to make a new deal that would address trade and political disruptions in Northern Ireland after Brexit
Price Action News
Overlay of Major USD Pairs Overlay of Major USD Pairs
USD received some support during the Asian session as more traders priced in their concerns over higher interest rates and tensions between Russia and Turkey (and its allies).
The safe-haven dollar made new intraday highs and broke above last week’s U.S. session highs before European traders came in with their cautious start-of-week risk-taking and bargain-hunting.
USD is now mostly back to its U.S. session ranges with Brexit and inflation headlines in focus.
Upcoming Potential Catalysts on the Forex Economic Calendar:
U.S. core durable goods orders at 1:30 pm GMT
U.S. pending home sales at 3:00 pm GMT
Japan’s preliminary industrial production at 11:50 pm GMT
Japan’s retail sales at 11:50 pm GMT
NZ ANZ business confidence at 12:00 am GMT (Feb 28)
AU retail sales at 12:30 am GMT (Feb 28)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
Technical Chart of the Day: EUR/USD
Later today we’ll see the U.S. core durable goods orders and pending home sales which may or may not support speculations of higher-for-longer interest rates in the U.S.
Markets may also pay close attention to the EU and U.K. leaders’ talks over Northern Ireland’s fate post Brexit.
A risk-friendly, anti-dollar trading environment could bust EUR/USD from a Double Bottom pattern on the 15-minute chart and take the pair to the 1.0575 area of interest. As you can see, the level is near a descending channel resistance and is right around the chart’s 200 SMA.
Then again, USD could regain support as soon as more headlines come in.
EUR/USD traders who take their cues from the unbroken 1.0560 resistance, the 100 SMA, and Stochastic‘s overbought signal can make another play for the Double Bottom support near 1.0535.
